Chiloé, in part because of its physical isolation from the rest of Chile and access to different materials, has a unique colonial architecture that differs substantially from typical Chilean Spanish colonial architecture.

Nearly all the houses and buildings in colonial Chiloe were built with wood, and wooden wood shingles were extensively employed. The roof shingles of Fitzroya came to be used as money and called Real de Alerce. In the late 19th century many palafitos, or stilt houses, were built in cities such as Castro and Chonchi.